The RBNZ clipped the kiwi's wings with the....>

FOREX: The RBNZ clipped the kiwi's wings with the language accompanying their

in-line decision to keep the OCR & size of the LSAP programme unchanged. New

Zealand's central bank expressed a sense of worry about the impact of NZD

appreciation on exporters' earnings and reminded that the MPC stands ready to

add monetary stimulus if needed. The RBNZ pointed to its toolbox, noting that

its staff is working to make various options "deployable in coming months". They

tipped hat to some positive developments, but noted that these may be fragile

and it is not clear whether the stimulus delivered to date is sufficient.

AUD/NZD punched through a key resistance from Jun 16 high of NZ$1.0729.

- Apart from that, the Asia-Pac session was subdued, with a mild risk-on feel

creping into the FX space. USD & JPY struggled for momentum, while AUD & NOK

marginally outperformed in the G10 basket. USD/CNH dipped after a stronger than

exp. PBoC fix, but recoiled into +ve territory later on. Signs of de-escalation

of tensions on the Korean peninsula allowed KRW to lead gains in Asia.

- German Ifo Survey and speeches from ECB's Lane and Fed's Bullard & Evans take

focus today. Monetary policy decision from the BoT is also due.